We've all struggled with using VPCs for our SharePoint development. Thanks to Bamboo Solutions, we can now install WSS and MOSS on our host laptops running under Vista.
Check out this page for steps on how to complete this.
-If using SQL Server Express Edition, install it before beginning the SharePoint installation
-You must choose the Advanced options of SharePoint during the install
-The install executable must be named SharePoint.exe (as it is in WSS). For the solution to work with MOSS, simply rename the executable to "SharePoint.exe".
Disclaimer: Unfortunately, this solution is not supported by Microsoft.